State of Illinois
90th General Assembly

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      305 ILCS 5/9A-11          from Ch. 23, par. 9A-11
          Amends  the  Illinois  Public  Aid  Code  in   provisions
      regarding   child   care   assistance.    Provides  that  the
      Department  of  Human  Services  shall  conduct  market  rate
      surveys, one to be completed by July 1, 1999, and one by July
      1 each year thereafter. Provides that  the  Department  shall
      adjust  rates paid for child care at least annually beginning
      no later than January 1, 1999, so that on or  before  January
      1,  2002,  rates  are  established  at the 75th percentile or
      higher of the market rate for each of the  various  types  of
      care as determined by the market rate survey conducted by the
      Department  to  be  completed by July 1, 1998, and subsequent
      market rate surveys conducted by the  Department.   Effective
 1        AN  ACT to amend the Illinois Public Aid Code by changing
 2    Section 9A-11.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  Illinois Public Aid Code is amended by
 6    changing Section 9A-11 as follows:
 7        (305 ILCS 5/9A-11) (from Ch. 23, par. 9A-11)
 8        Sec. 9A-11. Child Care.
 9        (a)  The General Assembly recognizes that  families  with
10    children  need  child  care  in order to work.  Child care is
11    expensive and families with low incomes, including those  who
12    are transitioning from welfare to work, often struggle to pay
13    the  costs of day care.  The General Assembly understands the
14    importance of helping low income working families become  and
15    remain  self-sufficient.   The General Assembly also believes
16    that it is the responsibility of families  to  share  in  the
17    costs  of  child  care.    It  is  also the preference of the
18    General Assembly that all working  poor  families  should  be
19    treated equally, regardless of their welfare status.
20        (b)  To   the   extent  resources  permit,  the  Illinois
21    Department shall provide child care services  to  parents  or
22    other  relatives  as  defined  by  rule  who  are  working or
23    participating in employment or Department approved  education
24    or  training programs.  At a minimum, the Illinois Department
25    shall cover the following categories of families:
26             (1)  recipients   of   TANF   under    Article    IV
27        participating   in   work   and  training  activities  as
28        specified  in  the  personal  plan  for  employment   and
29        self-sufficiency;
30             (2)  families transitioning from TANF to work;
31             (3)  families  at  risk  of  becoming  recipients of
                            -2-               LRB9010742SMpkA
 1        TANF;
 2             (4)  families with special needs as defined by rule;
 3        and
 4             (5)  working  families  with  very  low  incomes  as
 5        defined by rule.
 6        The Department shall specify by rule  the  conditions  of
 7    eligibility, the application process, and the types, amounts,
 8    and  duration  of  services.    Eligibility  for  child  care
 9    benefits and the amount of child care provided may vary based
10    on  family  size,  income,  and other factors as specified by
11    rule.  In  determining  income  eligibility  for  child  care
12    benefits, the Department shall establish, by rule, one income
13    threshold for each family size, in relation to percentage  of
14    State  median  income  for  a family of that size, that makes
15    families with incomes below the specified threshold  eligible
16    for  assistance and families with incomes above the specified
17    threshold  ineligible  for  assistance.      In   determining
18    eligibility  for  assistance,  the  Department shall not give
19    preference to any category of recipients or  give  preference
20    to  individuals based on their receipt of benefits under this
21    Code.  It is the intent of the  General  Assembly  that,  for
22    fiscal  year  1998,  to  the  extent  resources  permit,  the
23    Department shall establish an income eligibility threshold of
24    50%  of  the State median income.  Notwithstanding the income
25    level at which families become eligible to receive child care
26    assistance, any family that is already receiving  child  care
27    assistance  on  the  effective date of this amendatory Act of
28    1997 shall remain eligible for  assistance  for  fiscal  year
29    1998.    Nothing  in  this  Section  shall  be  construed  as
30    conferring entitlement  status  to  eligible  families.   The
31    Illinois Department is authorized to lower income eligibility
32    ceilings,  raise parent co-payments, create waiting lists, or
33    take such other actions during a fiscal year as are necessary
34    to ensure that child care benefits paid under this Article do
                            -3-               LRB9010742SMpkA
 1    not exceed the amounts  appropriated  for  those  child  care
 2    benefits.    These  changes  may be accomplished by emergency
 3    rule  under  Section  5-45  of  the  Illinois  Administrative
 4    Procedure Act, except that the limitation on  the  number  of
 5    emergency  rules  that  may  be  adopted in a 24-month period
 6    shall not apply.  The Illinois Department may  contract  with
 7    other  State  agencies  or  child  care organizations for the
 8    administration of child care services.
 9        (c)  Payment shall be made for child care that  otherwise
10    meets   the  requirements  of  this  Section  and  applicable
11    standards of State and local law  and  regulation,  including
12    any  requirements the Illinois Department promulgates by rule
13    in addition to the licensure requirements promulgated by  the
14    Department   of   Children   and  Family  Services  and  Fire
15    Prevention and Safety requirements promulgated by the  Office
16    of  the  State  Fire  Marshal  and  is provided in any of the
17    following:
18             (1)  a child care center which is licensed or exempt
19        from licensure pursuant to Section 2.09 of the Child Care
20        Act of 1969;
21             (2)  a licensed child care home or home exempt  from
22        licensing;
23             (3)  a licensed group child care home;
24             (4)  other types of child care, including child care
25        provided  by relatives or persons living in the same home
26        as the child, as determined by the Illinois Department by
27        rule.
28        (d)  The Illinois  Department  shall,  by  rule,  require
29    co-payments  for child care services by any parent, including
30    parents whose only income is from assistance under this Code.
31    The co-payment shall be assessed based  on  a  sliding  scale
32    based  on  family  income,  family  size,  and  the number of
33    children in care.
34        (e)  The Illinois Department shall conduct a market  rate
                            -4-               LRB9010742SMpkA
 1    survey  based  on the cost of care and other relevant factors
 2    which shall be completed by  July  1,  1998,  another  to  be
 3    completed  by July 1, 1999, and one to be completed by July 1
 4    each year thereafter.
 5        (f)  The Illinois Department shall, by rule, set rates to
 6    be paid for the various types of child care. Child  care  may
 7    be provided through one of the following methods:
 8             (1)  arranging   the  child  care  through  eligible
 9        providers by use of  purchase  of  service  contracts  or
10        vouchers;
11             (2)  arranging  with  other  agencies  and community
12        volunteer groups for non-reimbursed child care;
13             (3)  (blank); or
14             (4)  adopting  such  other   arrangements   as   the
15        Department determines appropriate.
16        The  Department  shall  adjust  rates  at  least annually
17    beginning no later than January 1, 1999, so that on or before
18    January 1, 2002, rates are established at the 75th percentile
19    or higher of the market rate for each of the various types of
20    care as determined  by  the  market  rate  survey,  conducted
21    pursuant  to subsection (e), to be completed by July 1, 1998,
22    and  subsequent  market  rate  surveys   conducted   by   the
23    Department.
24        (g)  Families  eligible for assistance under this Section
25    shall be given the following options:
26             (1)  receiving a child care  certificate  issued  by
27        the  Department or a subcontractor of the Department that
28        may be used by the parents as payment for child care  and
29        development services only; or
30             (2)  if space is available, enrolling the child with
31        a  child  care  provider  that  has a purchase of service
32        contract with the Department or a  subcontractor  of  the
33        Department   for   the   provision   of  child  care  and
34        development  services.    The  Department  may   identify
                            -5-               LRB9010742SMpkA
 1        particular priority populations for whom they may request
 2        special  consideration  by  a  provider  with purchase of
 3        service contracts, provided that the providers  shall  be
 4        permitted  to  maintain  a balance of clients in terms of
 5        household incomes and families and children with  special
 6        needs, as defined by rule.
 7    (Source: P.A. 90-17, eff. 7-1-97.)
 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.

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